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Question

List price of a washing machine is Rs. 9000. If the dealer allows a discount of 5% on the cash payment, how much money will a customer pay to the dealer in cash, if the rate of VAT is 10%.

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Solution

List price of washing machine = Rs. 9000
Rate of discount =5%
Amount after giving discount
=Rs.9000×(100discount%)100
=Rs.9000×(100discount%)100=Rs.9000×95100
=Rs.8550
Rate of VAT =10%
Amount paid
=Rs.8550×(100+VAT%)100
=Rs.8550×(100+10)100=Rs.8550×110100
=Rs.9405


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